In an X post, pro-XRP lawyer Bill Morgan criticized the US Securities and Exchange Commission (SEC). This is after the SEC requested Ripple Labs pay $2 billion to the regulatory watchdog to settle the ongoing legal battle of XRP vs. SEC. As per Morgan, it makes no sense that a company that largely successfully defended a lawsuit should cut a check for $2 billion to the other party.
Following Morgan’s critique, the XRP community engaged in discussions regarding the SEC’s request for Ripple Labs to pay $2 billion. Notably, a user identified as @XRP4FREEDOM voiced a different perspective, proposing that Ripple’s CEO, Brad Garlinghouse, and Chief Legal Officer, Stuart Alderoty, should consider paying the settlement to halt further legal actions by the SEC. The user questioned the risk associated with prolonging the legal battle, especially in light of Coinbase’s recent move to seek an interlocutory appeal.
Ripple’s XRP Case Tied to Coinbase Appeal
Coinbase, a prominent cryptocurrency exchange, has intensified its legal battle against the SEC by filing a brief to pursue an interlocutory appeal. This appeal challenges the SEC’s interpretation of an “investment contract.” It aims to seek judicial clarity on whether digital assets, such as cryptocurrencies, can be classified as investment contracts in the absence of an underlying contract. The outcome of this appeal is anticipated to have significant implications for the regulatory landscape of cryptocurrencies in the United States.
This development has drawn attention from market enthusiasts and traders alike, with many closely monitoring the proceedings between Coinbase and the SEC. Bill Morgan, the XRP lawyer, commented on Coinbase interlocutory appeal, suggesting that a loss for Coinbase could bolster the SEC’s position in the ongoing XRP programmatic sales case. This case revolves around the SEC’s assertion that XRP’s programmatic sales constitute investment contracts, a stance challenged by Ripple Labs.
Deaton Advocates for Coinbase Customers in SEC Case
An attorney, John Deaton, recently submitted a request to serve as amici counsel on behalf of 4,701 Coinbase customers in the legal dispute between Coinbase and the SEC. Deaton’s move aligns with Coinbase’s objective to seek clarity on the classification of digital assets as investment contracts. By representing a significant number of Coinbase customers, Deaton aims to contribute to the ongoing discourse surrounding the regulatory framework for cryptocurrencies and investment contracts.
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